A non-profit that promotes digital innovation is funding 11 projects focused on boosting housing productivity in B.C. – one of which involves a local company that recently admitted to unregistered securities trading.
Vancouver-based Digital (formerly the Digital Technology Supercluster) is using $9 million from the B.C. Ministry of Housing and Municipal Affairs to fund various projects “focused on optimizing supply chain performance and utilizing advanced production technologies to increase housing productivity,” according to a Tuesday press release.
The projects vary widely, with some focused on new construction methods and materials, and others focused on the use of digital technologies for municipal permitting and building inspections.
One funding recipient, however, was fined $100,000 by securities regulators the day before Digital’s announcement.
In a March 17 settlement agreement with the B.C. Securities Commission (BCSC), Addy Technology Corp. admitted misconduct “for engaging in the business of trading securities without being registered,” said the regulator’s announcement.
The Vancouver-based crowdfunding company facilitates fractional investments as low as $1 per share in real estate developments, and is being funded by Digital to develop a case study for accelerating rental housing for essential workers in health, safety and education.
Addy’s head of operations, Kolina Kretzschmar, told BIV the securities penalty will “not at all” affect the project, which the company remains “very excited” about.
“The settlement with the BCSC was simply a step in our ongoing regulatory evolution, and it has only reinforced our commitment to building a stronger and more sustainable platform for democratized real estate investing,” she wrote in an email.
“Our voluntary settlement with the BCSC was about aligning with regulations as we continue to grow. Now, we’re taking a major leap forward by becoming a registered exempt market dealer, which means even greater access to investment opportunities for our community.”
An exempt market dealer refers to registered securities dealers who operate in the private capital market, where securities can be traded without the normal requirement for a prospectus, a legal document detailing investment risks.
Digital said in a statement to BIV it is actively reviewing the situation involving Addy's settlement with the BCSC.
"Digital’s contracts require all project delivery partners to follow applicable laws during the partner’s work with Digital," the organization said. "This includes ensuring that there are no actions or proceedings pending that would adversely affect the partner’s ability to fulfil its obligations throughout its work with Digital.
Addy’s case study would be developed in collaboration with Tomo Spaces and the City of Mission.
“We have been informed about the settlement with the BCSC, and will be taking time to learn more about the steps being taken as Addy moves forward as a registered exempt market dealer,” the City of Mission said in a statement.
Tomo Spaces did not respond to a request for comment.
Besides Addy, Digital’s other funding recipients are listed below, including those from the first cycle announced last fall.
- BCollective Homes in collaboration with SvN Architects + Planners to develop educational content regarding wood-panelized offsite construction;
- Mddl in collaboration with SRI Homes and Formed Alliance Architecture Studio (FAAS) to demonstrate a pre-approved, modular-ready home design;
- Perkins&Will Canada Architects in collaboration with ASPECT Structural Engineers, Introba, Credos Project Management Ltd. and Simon Fraser University’s School of Interactive Arts & Technology to design a housing solution using innovative techniques guided by computational methods;
- OK Laminators Inc., also known as Mercer Okanagan, to develop a free and public pre-design tool;
- Wesgroup Properties LP in collaboration with Velgor Construction Inc. to integrate digital manufacturing technologies for building components;
- Radical I/O Technology Inc. in collaboration with SimpliCity Digital Inc., City of Salmon Arm and District of North Vancouver to assess municipal digital readiness;
- Cloudpermit Inc. in collaboration with TedfordAI and Alberta Machine Intelligence Institute to modernize building inspections with artificial intelligence;
- Malahat Nation in collaboration with Archistar and Zaha Hadid Architects to integrate 3D generative design into master-planning;
- Nak'azdli Development Corp. in collaboration with Deadwood Innovations Limited, Prakash Architecture and Gehloff Consulting Inc. to introduce a low-cost, high-performance material to the mass-timber market; and
- Green Metrics Technology Corp. in collaboration with Tandem Solutions and Liquid to develop a procurement support system.
According to Tuesday’s press release, Digital has co-invested $158 million since 2018 in B.C.-led projects in sectors including natural resources, health, workforce development and housing.
The non-profit claims that its efforts to accelerate the commercialization and adoption of new technologies have led to over $843 million in follow-on funding.
